Krugman and Giordano, Bankruptcy Fraud, Florida 2008

A Palm Beach County couple, Dr. Richard S. Krugman, 61, and Tamara B. Giordano, 54, have been sentenced to prison for their participation in a bankruptcy fraud scheme.

The couple, who were the owners of a multi-million dollar health care company, filed a joint personal bankruptcy petition in United States Bankruptcy Court in Palm Beach County, Florida on August 27, 2008. They claimed they owed almost $3 million to creditors and had available assets worth less than $13,000.

An investigation revealed that Krugman and Giordano knowingly and fraudulently concealed and caused to be concealed property belonging to their bankruptcy estate. They concealed jewelry and other valuables, including a women’s gold and diamond Rolex watch, a gold ring with two carats of diamonds, diamond earrings, Royal Dalton china, Waterford crystal, silver, and two George Rodrigue ‘Blue Dog’ lithographs, signed and numbered.

Krugman and Giordano each previously pled guilty to one count of bankruptcy fraud, in violation of Title 18, United States Code, Section 152. They were each sentenced to one year and one day in prison and ordered to pay restitution in the amount of $27,294.35.

‘Criminal bankruptcy fraud can pose a threat to the economy and those who honestly abide by the bankruptcy laws,’ stated U.S. Attorney Wifredo A. Ferrer. ‘Those who hide their assets from the bankruptcy court to enrich themselves should know they may be prosecuted and imprisoned for their misdeeds.’

This case is being prosecuted by Assistant U.S. Attorney Carolyn Bell. The investigative efforts of the FBI were commended by Mr. Ferrer. A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl.

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